Morning Minutes 7/2/2020

Morning Minutes

Stocks Surge Upward as Nonfarm Payrolls Exceed Expectations

July 2, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

US equity markets have kicked into rally mode heading into tomorrow’s US Independence Day holiday as investors cheer a better than expected US nonfarm payrolls report. June payrolls rebounded by 4.8 million jobs, handily beating the 3.0 million the street was expecting. May payrolls gains were revised upward to 2.69M. the US unemployment rate fell to 11.1% from 13.3% last month and beat the 12.3% street estimate.

On this news, Dow futures are now up over 400 points or 1.6%, with S&P futures gaining 1.25% and NASDAQ futures up 1.0%. In Europe today, the Dax is up 2.2% while the FTSE is up 1.0%. WTI crude oil has regained $40.00/bl with a 1.2% gain while copper has climbed 0.4%.

In corporate news today, Tesla Motors* is up 8.7% after the company reported Q2 electric vehicle deliveries of 90,650, well above the 72,000 the street had been expecting. McDonalds is up 0.8% with investors shrugging off news that the company is slowing the reopening of eat-in service at some restaurants, but continuing service at locations that have already fully reopened (in other words slowing steps forward but not taking steps backward).

*Shares of Tesla Motors are held in some portfolios managed by SIA Wealth Management.

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